Cyanogen has done a great job of improving the standard rom's, to the point where many people would not use their Magic without his work. A real shame that he is being put through this, when his work has helped out so many people. And lets be clear - he is not in this to make money.
For most who just use the standard ROM and put up with slow responses etc. this won't matter, but to thousands of others who benefit from Cyanogens work, and all the other Android and Windows Mobile chefs, this is a big deal - I really wouldn't be happy with my Diamond/Hero without a custom ROM, I would have got an iPhone - so T-Mobile in particular should be sponsoring their work!